Presentation about the basics of Inventory Management and Warehousing

1. Inventory Management & Warehousing
Integration, Automation, Visibility…

2. i
Inventory Management & Warehousing
Integration, Automation, Visibility…

3. Inventory Management & Warehousing
Integration, Automation, Visibility…
Inventory Management - The overseeing and controlling of the ordering, storage and use of
stock items that a company will sell for a profit or use in the production of finished products.
1. One of the major assets a company can have
2. Mismanaged inventory can create significant financial problems
• Surplus
• Shortage
Two common IM strategies are:
• JIT inventory
• MRP
FACTS:
JIT - Sakichi Toyoda, Kiichiro Toyoda, Taiichi Ohno
MRP – 1964 by James Orlicky

4. Inventory Management & Warehousing
Integration, Automation, Visibility…
The basics of inventory management - If you are not keeping a watchful eye on your
inventory or counting stock regularly, you are setting yourself up for inventory errors and challenges.
Proper inventory management really can make or break your business!
1. Improves the accuracy of orders - Always know how much you need on-hand and avoid shortage
2. More organized warehouse - Optimize stocking procedures and improve order fulfillment
3. Helps save time and money - Stock more of products that turn faster, avoid stocking slow turning
product
4. Increases efficiency and productivity – Embrace automation. Barcode scanners and software
5. Keeps your customers coming back for more – Avoid stockpots, meet customer demand quickly
and accurately

5. Inventory Management & Warehousing
Integration, Automation, Visibility…
Defining warehouse management - Is a cluster of factors that enable the efficient flow
of products in and out of the facility. Ensuring profitability and minimizing overhead and labor costs,
warehouse managers must optimize the building’s layout, make sure orders are fulfilled timely and
products are in stock, but not overstocked.
1. Organization is king - Organizes your materials in a logical and defined order
2. Reorganize when needed - Reevaluate your inventory and storage methods periodically
3. Use quality control - Verify product before processing
4. Use the right software – Adopt a fully integrated business management software
5. Ensure prompt delivery and customer service - Know where your orders are

6. Inventory Management & Warehousing
Integration, Automation, Visibility…
“To ensure visibility inventory management and
warehouse management processes MUST be
centralized and systematized with the rest of the
business units’ processes.”
1. Integrate processes
2. Centralize your data
3. Leverage information
4. Improve visibility
Nothing would make a Chief Operating Officer happier…

7. Inventory Management & Warehousing
Integration, Automation, Visibility…
What do we do?
cen·tral·ize
/ˈsentrəˌlīz/
verb
: to bring (things that are in different places) together at a single point or place
: to concentrate by placing power and authority in a center or central organization
sys·tem·a·tize
/ˈsistəməˌtīz/
verb
: to organize (something) by using a system
: to arrange in accord with a definite plan or scheme

8. Inventory Management & Warehousing
Integration, Automation, Visibility…
What does that mean?
cen·tral·ize
 Cleanse/purge
 Standardize
• Data & statistics
• Records & document
Organize and control anything factual…
 Evaluate
 Design or redesign
• Op. processes
• Workflows
Embrace best business practices…
sys·tem·a·tize
 Data capturing
 Data analysis
 Information distribution
 Process approvals
 Triggers and alerts
 Day-to-day processes
Adopt enterprise-wide interconnectivity…
What would make me happy?! (if I were you…)
 Accurate data
 Availability of information (readily)
 Automated process flow

9. Inventory Management & Warehousing
Integration, Automation, Visibility…
The real world (over simplified)…
Sales
• Sold more than we had in stock
• Sold old new product at old pricing
• Over-promised delivery
• Used the wrong SKU
Operations
• Stocked the wrong product
• Shipped LIFO not FIFO
• Didn’t restock promptly
• Picked the wrong SKU
It is your choice for this to be happening to you,
Regardless of what you requirements are, there is an answer for your needs…

10. Inventory Management & Warehousing
Integration, Automation, Visibility…
The goal
Turn all of your efforts into measurable, trackable information…
How happy would this make your COO?
cen·tral·ize
 Cleanse/purge
 Standardize
• Data & statistics
• Records & document
Organize and control anything factual…
 Evaluate
 Design or redesign
• Op. processes
• Workflows
Embrace best business practices…
sys·tem·a·tize
 Data capturing
 Data analysis
 Information distribution
 Process approvals
 Triggers and alerts
 Day-to-day processes
Adopt enterprise-wide interconnectivity…
vis·u·al·ize
/ˈviZH(əw)əˌlīz/
verb
: form a mental image of; imagine
: make (something) visible to the eye
: to make perceptible to the mind

11. Inventory Management & Warehousing
Integration, Automation, Visibility…
The goal
vis·u·al·ize
/ˈviZH(əw)əˌlīz/
verb
Reports
KPIs
Dashboards
3D Analysis
op. costs
product costs
sales per customer
Inventory turns
margins
best/worst selling items
on-time delivery
fulfillment cycle
scrap variances
production schedules

12. Inventory Management & Warehousing
Integration, Automation, Visibility…
Thank you for joining us!